NOTES TO FINANCIAL STATEMENTS
Pursuant to the advisory agreement, the Adviser provides to each Portfolio certain legal and accounting services.
For the year ended September 30, 2000, the Adviser agreed to waive all or a portion of its fees for such
services. The aggregate amounts of such fee waivers were $93,000 for the Michigan, Minnesota and Virginia
Portfolios and $23,000 for the Arizona Portfolio. In addition, the Adviser agreed to reimburse each Portfolio for
certain operating expenses. There were no such expenses for any of the Portfolios.
Each Portfolio compensates Alliance Fund Services, Inc. (a wholly-owned subsidiary of the Adviser) under a
Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for each
Portfolio. Such compensation amounted to: Arizona Portfolio, $28,565; Florida Portfolio, $59,047;
Massachusetts Portfolio, $46,249; Michigan Portfolio, $24,788; Minnesota Portfolio, $22,395; New Jersey
Portfolio, $69,864; Ohio Portfolio, $45,631; Pennsylvania Portfolio, $60,578; and Virginia Portfolio, $44,325.
For the year ended September 30, 2000, each Portfolio's expenses were reduced under an expense offset
arrangement with Alliance Fund Services as follows:
Arizona Portfolio, by $1,573; Florida Portfolio, by $3,192; Massachusetts Portfolio, by $2,529; Michigan
Portfolio, by $1,373; Minnesota Portfolio, by $1,255; New Jersey Portfolio, by $3,620; Ohio Portfolio, by
$2,415; Pennsylvania Portfolio, by $3,540; and Virginia Portfolio, by $2,436.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser, serves as the
Distributor of the Fund's shares. The Distributor has advised the Fund that it has received front-end sales charges
from sales of Class A shares and contingent deferred sales charges imposed upon redemptions by shareholders
of Class A, Class B and Class C shares for the year ended September 30, 2000 as follows:
58 o ALLIANCE MUNICIPAL INCOME FUND II